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A paper published by the European Central Bank (ECB) discusses various conditions for successful implementation of central bank digital currencies (CBDCs) such as the eurozone’s own digital euro. The authors also point to different risks that such projects entail, like the danger of crowding out the private sector. ECB: Digital
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While much attention focuses on the retail central bank digital currency (CBDC) ruminations of China, Europe and the United States, smaller jurisdictions are leading the way. For example, Uruguay, the Bahamas, the Eastern Caribbean Central Bank, Nigeria and Jamaica have each launched pilot CBDCs over the past three years.The potential
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The governor of the Bank of England (BoE), Andrew Bailey, said that exploring a central bank digital currency (CBDC) would be better for financial stability than asset-backed stablecoins, which the banking chief said he was “skeptical” about.Speaking at a House of Lords’ Economic Affairs Committee on Tuesday, Bailey said a
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Monetary authorities are finally taking crypto seriously – perhaps too seriously.The idea of fiat currency is something of a historical anomaly. Around 5,000 years ago, shiny metals became a store of value for goods and services. Those were soon fabricated into standardized tokens, becoming media of exchange. It wasn’t for
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While Nigerians have seemingly embraced the Central Bank of Nigeria (CBN)’s digital currency, skeptical analysts believe a lack of trust in the government will ultimately limit the e-naira’s prospects for success. Threat From Fintech Startups In addition, some analysts insist the digital currency’s already tenuous position is made worse by the fact
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Central bank digital currencies (CBDCs) will probably become legal tender in the jurisdictions of their issuance, the European Central Bank’s (ECB) Fabio Panetta said.Panetta, a member of the ECB’s executive board, said this was “likely” at a panel in Helsinki on Tuesday, according to a Bloomberg report. However, this status
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France’s central bank has concluded that further examination of wholesale central bank digital currencies (CBDCs) is needed following its initial experiments.The Banque de France’s experiment commenced in March 2020, with results published Monday.“We have demonstrated that a wholesale CBDC would be of benefit for cross-border and cross-currency payments as it
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The report uses the ASEAN region and its corridors as an example, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, which operates across a diverse set of 10 currencies and contributes 7% of global cross-border trade. Source
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The report’s authors question whether stablecoins could “offer lasting competitive advantages over rapidly developing, evolving digital payment services,” including digital ID, e-money and mobile banking. They add that stablecoins could generate new risks related to such issues as governance, efficiency in payment processes, consumer protection and data privacy. Source
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Over the last year, the narrative surrounding central bank digital currencies (CBDCs) has advanced considerably. From an almost entirely conceptual discussion, CBDCs are now in various stages of research and development to ascertain how they could work in practice.China’s digital yuan is currently leading the pack. Following several pilots, the
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